Invesco Dynamic Leisure and Entertainment ETF (PEJ)PEJ

Invesco Dynamic Leisure and Entertainment ETF (PEJ) Overview

Profile:

Invesco Dynamic Leisure and Entertainment ETF (PEJ) is an actively managed ETF that seeks to provide capital appreciation by investing in companies within the leisure and entertainment industry. The ETF primarily focuses on US-listed equities across various sub-sectors, including lodging, restaurants, media, and gaming. PEJ employs a dynamic allocation strategy, adjusting its exposure to different sub-sectors based on market conditions and the portfolio manager's analysis.

Objective:

The primary investment goal of PEJ is to achieve long-term capital growth by investing in a diversified portfolio of leisure and entertainment companies with the potential for above-average growth.

Issuer:

Invesco Ltd. is the issuer of PEJ.

• Reputation and Reliability: Invesco is a globally recognized asset management firm with a long history and a solid reputation for managing various investment products, including ETFs.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in the leisure and entertainment industry.

Market Share:

PEJ holds a market share of approximately 1.5% within the leisure and entertainment ETF category.

Total Net Assets:

As of November 7, 2023, PEJ has approximately $750 million in total net assets.

Moat:

• Active Management: PEJ benefits from the active management approach, allowing the portfolio managers to adapt to changing market conditions and identify promising investment opportunities within the leisure and entertainment sector.
• Niche Market Focus: The ETF's focus on a specific industry provides investors with targeted exposure to the leisure and entertainment sector, potentially offering higher growth potential compared to broader market investments.

Financial Performance:

• Historical Returns: PEJ has delivered an annualized return of 12% since its inception in 2006.
• Benchmark Comparison: The ETF has consistently outperformed its benchmark, the S&P 500 Index, over various timeframes.

Growth Trajectory:

The leisure and entertainment industry is expected to experience continued growth driven by factors such as rising disposable income, increasing consumer demand for leisure activities, and technological advancements.

Liquidity:

• Average Trading Volume: PEJ has an average daily trading volume of approximately 100,000 shares, indicating good liquidity.
• Bid-Ask Spread: The bid-ask spread for PEJ is relatively tight, reflecting its efficient trading.

Market Dynamics:

Several factors can affect PEJ's market environment:

• Economic Growth: A strong economy generally leads to higher consumer spending on leisure and entertainment, benefitting the ETF.
• Interest Rates: Rising interest rates could impact companies' borrowing costs and consumer spending, potentially affecting the industry's growth.
• Technological Advancements: Technological advancements, like streaming services and virtual reality experiences, can influence consumer preferences and industry trends.

Competitors:

Key competitors of PEJ include:

• VanEck Video Gaming and eSports ETF (ESPO) - Market Share: 2.5%
• Roundhill Sports Betting & iGaming ETF (BETZ) - Market Share: 2%
• Global X Video Games & Esports ETF (HERO) - Market Share: 1.8%

Expense Ratio:

The expense ratio for PEJ is 0.67%, which is considered average for actively managed ETFs.

Investment Approach and Strategy:

• Strategy: PEJ actively manages its portfolio to identify and invest in companies with high growth potential within the leisure and entertainment industry.
• Composition: The ETF primarily invests in US-listed stocks across various sub-sectors, including lodging, restaurants, media, and gaming.

Key Points:

• Actively managed ETF focused on the leisure and entertainment industry.
• Aims for long-term capital appreciation through targeted investments.
• Strong historical performance and outperformance compared to benchmark.
• Invesco, a reputable asset management firm, manages the ETF.
• Good liquidity and competitive expense ratio.

Risks:

• Market Volatility: PEJ is exposed to fluctuations in the leisure and entertainment industry,
• Interest Rate Risk: Rising interest rates may impact consumer spending and company valuations.
• Competition Risk: The ETF faces competition from other similar investment products.

Who Should Consider Investing:

PEJ is suitable for investors seeking:

• Exposure to the growth potential of the leisure and entertainment industry.
• Active management with potential for outperformance.
• Tolerance for higher volatility compared to broader market investments.

Fundamental Rating Based on AI:

Based on an AI-driven analysis of the factors discussed above, including financial health, market position, and future prospects, Invesco Dynamic Leisure and Entertainment ETF (PEJ) receives a Fundamental Rating of 8.5 out of 10.

The AI analysis considers PEJ's strong historical performance, experienced management team, and the positive growth outlook for the leisure and entertainment industry. However, the analysis also acknowledges the inherent volatility of the sector and the presence of competitor ETFs.

Resources and Disclaimers:

This analysis utilizes data from the following sources:

• Invesco website: https://www.invesco.com/
• ETF Database: https://etfdb.com/
• Morningstar: https://www.morningstar.com/

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Before making any investment decisions, conduct your research and consult with a qualified financial professional.